The O2 increase

O2 will be raising its prices by the Retail Prices Index measure of inflation for October (the most recent month that we have inflation figures for) of 3.2%. The price rise will kick in from 28th February 2013.

The price increase only covers the line rental for pay monthly tariffs, so the costs of actual calls and text messages are unaffected. O2 claims that for more than half of its customers the increase will mean no more than an extra 58p per month.

Why O2 is raising its prices

In a statement, O2 blamed rising “external costs” and highlighted that, while its competitors had been raising their prices, it had held off as long as possible.

It concluded: “Price increases are never welcome and this isn’t a decision we’ve taken lightly. However, it will help enable us continue to invest in the services that matter to our customers while still offering great value for money.”